In a landmark ruling, a U.S. District Judge has directed the Northern District of California's U.S. Attorney to investigate Apple for potential criminal contempt following the company’s willful violation of her injunction related to the Epic Games lawsuit. Judge Yvonne Gonzalez Rogers found that Apple’s executive team, including CEO Tim Cook, ignored court directives aimed at curbing anti-competitive behavior.
The case, initiated by Epic Games—creator of the immensely popular Fortnite—argued that Apple’s practice of taking a 30% commission on app purchases and prohibiting third-party payment options constituted monopolistic practices. Judge Gonzalez Rogers had previously ruled that such restrictions were no longer permissible, allowing developers to use alternative purchasing mechanisms.
In her contempt order issued Wednesday, she indicated that Apple continued to undermine competition by implementing new charges and barriers that would dissuade customers from seeking out competitive purchasing platforms. She reported that internal documents suggested Apple was fully aware of these violations but chose to proceed with its anti-competitive agenda.
Notably, Judge Gonzalez Rogers stated that Apple Vice President Alex Roman lied under oath in connection with the proceedings. The judge highlighted that Cook disregarded the counsel of senior executives, including Phillip Schiller, to comply with the court’s order.
In response to the judge's ruling, Apple announced their intent to appeal, stating they “strongly disagree” with the decision. Meanwhile, Epic Games’ CEO Tim Sweeney expressed optimism about the future, proposing a “peace proposal” that could see Fortnite return to the App Store if Apple expands the court's framework of reduced fees globally.
The ruling has major implications for the industry, as Epic Games asserts this could signal a shift towards fairer practices in app distribution and financial management in a digital economy increasingly scrutinized for monopolistic behaviors. Sweeney emphasized that the time has come for Apple to abolish its controversial commission structure, claiming their practices are now deemed unlawful both in the United States and under European legislation.
